Crypto social media has been flooded by enraged Coinbase users who cannot withdraw their Solana (SOL) tokens, sparking rumors of insolvency.
“What’s the drama with Coinbase and Solana?” crypto YouTuber ‘Wendy O’ asked her 412,000 followers on X on Jan. 21.
Meanwhile, crypto investor ‘Curb’ asked Coinbase CEO Brian Armstrong, “After dealing with insolvency last cycle (FTX), we demand answers into why it is taking 9+ hours to send/receive SOL when [it] takes less than 1 second on chain.”
“Is Coinbase insolvent? Where are your proof of Solana reserves?” they asked.
Brian / Coinbase,
After dealing with insolvency last cycle (FTX), we demand answers into why it is taking 9+ hours to send/receive $SOL (takes less than 1 second on chain).
Is @coinbase insolvent, where are your proof of Solana reserves?
This is unacceptable.@brian_armstrong pic.twitter.com/dFjkkLk9et
— Curb◎ (@CryptoCurb) January 20, 2025
Solana Stuck on Coinbase
“Coinbase is reportedly out of Solana, making users unable to withdraw money,” said ‘Financelot’ to their 205,000 followers on X.
Crypto venture capitalist Will Clemente commented, “What’s more likely is that they haven’t prioritized infrastructure build-out for Solana, maybe in part because they’re not incentivized to do so with a competing on-chain platform (Base).”
Others shared screenshots of waiting times of hours for pending transactions, with one user asking, “Where are my coins?” before claiming to be down nearly $1,000, “patiently waiting for my Solana,” adding, “Literally never using your platform again. Moving to Gemini.”
On Jan. 21, Coinbase announced support for the recently launched Official Trump (TRUMP) meme coin on the Solana network as a SPL token.
Coinbase will add support for Official Trump (TRUMP) on the Solana network (SPL token). Do not send this asset over other networks or your funds may be lost. Transfers for this asset are available on @Coinbase & @CoinbaseExch in the regions where trading is supported.
— Coinbase Assets ️ (@CoinbaseAssets) January 20, 2025
It is not the first time Coinbase has failed under heavy demand, and the exchange is known for going offline or having ‘technical issues’ when markets are at peak volatility. The Solana network has also had more than its fair share of outages over the past few years.
SOL Price Slumps
The rush to remove Solana and cash out has been exacerbated by the token tanking by around 13% over the past few hours. SOL prices hit an intraday high of $272 on Monday but dumped to $234 during the Tuesday morning Asian trading session.
Additionally, the asset is also down almost 20% from its all-time high of $293 on Jan. 19.
Solana-based and other meme coins are also getting mauled today. TRUMP has tanked more than 20%, while MELANIA has slumped around 50% over the past 24 hours.
Other memes, such as Fartcoin, Dogwifhat, Mog Coin, and Freysa AI, are also deep in the red.
